A closer look at boutique luxury homes

Luxury housing was one of the major losers after the demonetization move and has now taken an extreme back seat. However, there is one niche segment which still holds its own. While most developers of luxury housing were concentrating on generating volumes in the luxury segment, there is a category of builders who are cashing in on this rather specialized niche – the boutique luxury homes category. They are also known as 'limited-edition' residences, and for good reason.

The segment is based on a sound business premise, and such homes continue to sell well even as volume luxury properties lag far behind. This is primarily because there is a distinct scarcity quotient attached to them.

Such properties are constructed with a very limited number of units in extremely high-profile locations and are in consistently high demand among the super-rich. In fact, the demand for such properties has risen visibly over the last couple of years, as land availability in our larger cities’ core areas reduced. Many builders who create boutique luxury homes are highly specialized and cater only to this particular market segment. They find this format a unique business proposition, since it is possible to construct and deliver boutique luxury projects within six to eight months, while volume luxury projects take much longer to complete.

High-end amenities

Developers of boutique luxury homes throw in every possible high-end amenity into such properties and even factor in the personal specification requirements of individual buyers wherever possible. Unlike volume luxury housing projects, boutique homes are extremely unique residential propositions. Interestingly, unlike in volume luxury projects, marketing of such properties tends to circumvent the larger investor community entirely and focuses on small ‘inner-circle’ investor groups and end-users. In short, boutique luxury properties are defined by an extreme focus on quality rather than volume.

Look for this article’s next part in forthcoming DNA Property issues

Anuj Puri
Chairman - ANAROCK Property Consultants